Investing.com - Here are the top five things to know in the market on Thursday, May 16:
1. Trump Puts off Opening New Front in Trade War
President Donald Trump is set to hold off from imposing import tariffs on European and Japanese car imports for another six months, according to reports. Bloomberg reported Wednesday that an executive order currently being drafted would give the E.U. and Japan 180 days to agree voluntary restrictions on imports instead.
However, the trade conflict with China intensified as the Commerce Department effectively banned Huawei from selling 5G network equipment in the U.S., and also introduced a new requirement for U.S. companies to get licenses in order to sell to it.
2. Stocks Set to Edge Higher at Opening
U.S. stock markets are set for a mixed open, unwilling to embrace more risk after data from both China and the U.S. showed weaker-than-expected retail sales and industrial production in April.
As of 5:45 AM ET, all three major indexes were indicated up less than 0.1%, with the Dow futures contract up 16 points, the S&P 500 futures up 3.5 points, and the tech-oriented Nasdaq 100 futures up 7 points
The day's light earnings scheduled is led by Walmart (NYSE:WMT), which is scheduled to report before the opening.
3. Who's Afraid of the Big Bad China Treasuries Scare Story?
The yields on U.S. Treasury bonds continued to fall, as the escalation of the trade war with China prompted safe-haven buying. The yield on the benchmark 10-year bond has now fallen to 2.37%.
That's despite a release from the Treasury yesterday showing that China dumped Treasury bonds at the fastest rate in two years in March, selling a net $20.5 billion worth of bonds. The sales - which happened before the U.S. proceeded with a wide-ranging extension of its import tariffs, will ease the fears that China could effectively 'weaponize' its Treasury holdings in forcing U.S. interest rates higher by dumping bonds on the market.
4. Oil Slips on Mid-East Tensions, U.S. Data
Oil prices extended their recent gains on the back of rising tension in the Middle East and data showing a drop in U.S. gasoline inventories. Reports suggesting that Russia still hasn't got to grips with problems of contaminated oil flowing through its largest European export pipeline are also supporting prices.
Crude Oil WTI Futures were at $62.44 a barrel as of 5.45 AM ET, while international benchmark Brent was at $72.14 a barrel. That's a gain of nearly $2 from their low point on Monday.
Earlier Thursday, Saudi Arabia formally accused Iranian-sponsored Houthi rebels in Yemen of being behind attacks on its oil export facilities earlier this week. That comes only two days before delegates from OPEC, Russia and other oil-exporting countries are due to meet to discuss the state of the world oil market before they formally review their output restraint deal next month.
Read More: 4 Reasons Why The Oil Market Isn't Reacting To Rising Persian Gulf Tensions - Ellen R. Wald, Ph.D.
5. T. Rowe Price Pares Tesla Stake
T. Rowe Price, one of Tesla (NASDAQ:TSLA) biggest and earliest public investors, sold most of its shares in the electric vehicle maker in the first quarter, according to the fund manager's disclosure.
The company cut its holding of Tesla shares from 8.9 million shares at the start of the year to only 1.7 million shares at the end of March, according to a stock exchange filing.
The news appears to leave Tesla more dependent on its army of retail investors to keep it funded while it tries to scale up production and return to profitability.